Nepal to Kuwait and Qatar: Fair recruitment in review - fivecorridorsproject.org - The Five Corridors Project
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THE FIVE CORRIDORS PROJECT - CORRIDORS 2 AND 3
Nepal to Kuwait and Qatar:
Fair recruitment in review
JULY 2021
fivecorridorsproject.orgABOUT THIS DOCUMENT The Five Corridors Project is an initiative led by FairSquare Projects, which aims to identify key measures that governments can take to ensure that migrant workers can migrate safely and with dignity. FairSquare Projects is a non-profit human rights organisation that tailors rigorous research with communication and advocacy work to promote systemic change. The Five Corridors Project is supported by Open Society Foundations, Humanity United and Porticus. The organisations that funded this project played no role in the design or execution of the research, and our conclusions and recommendations may not necessarily reflect the viewpoints of Humanity United, OSF or Porticus. fairsq.org Design by www.NickPurserDesign.com Cover photograph: Visa applicants at a Migration Resource Center in Kathmandu, Nepal, 2015. © ILO
Assessment against the
Five Corridors indicators:
4. Licensing, registration and certification schemes
4.1 Is the system comprehensive? Does it apply to recruitment for all kinds of work? 71
4.2 Is the licensing / registration system transparent and accessible? Can workers
and other interested parties use this system to verify the legitimacy of recruitment
agencies and placement offers? 75
4.3 Are worker and recruiter organizations consulted on the design and
implementation of these schemes? 77
4.4 Does the government put in place measures that incentivise ethical
recruitment practices? 78
4.5 Are employers and recruiters jointlyliable/accountable for respecting workers’
rights in the legislative and regulatory regime governing recruitment? 80
68 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 34. Licensing, registration and certification schemes
“The international recruitment industry in Nepal flourishes from non-compliance with the law, making the costs higher
and the business more challenging for those who do comply with the law. Those who invest in better practices find
themselves having to offer higher prices to overseas clients.” 2017 ILO REPORT
Summary Kuwait does not have a specific private sector
recruitment industry licensing and certification
Most overseas migration from Nepal, including scheme, except in relation to domestic workers,
to the Gulf, is facilitated by private recruitment where the regulations have been strengthened since
agencies. Nepal has a complex and highly 2015 in response to international concerns about
centralized licensing operation, and recently abuse of migrant workers and domestic concerns
introduced measures to improve transparency. Most about agencies exploiting Kuwait employers,
licensed recruitment agencies are headquartered including with high fees. There are no explicit fair
in Kathmandu - there are only branch offices recruitment requirements imposed on recruiters as
outside the capital in four of Nepal’s 75 districts. part of the licensing process. There is no transparent
The concentration of agencies in the capital and process for monitoring the legal status and practice
other major cities, as well as Nepal’s mountainous of recruitment agencies, and CSOs have as a result
and rugged terrain, which makes travel difficult, tried to encourage recruitment agencies to self-
means both licensed agencies and aspiring migrants certify as ethical.
across Nepal use the services of intermediaries, in
the form of individual local ‘agents’, ‘sub-agents’ Qatar’s recruitment agency licensing system covers
and ‘brokers’, the vast majority of whom are recruitment for all kinds of work though there
unlicensed. The government has recently banned are few requirements specified in relation to fair
agencies from using sub-agents, requiring them recruitment. The licensing system does not address
to establish branch offices instead, but in practice, the specific role of labour supply or “manpower”
these informal, unregistered local actors remain companies, which - working with partner
deeply embedded in Nepal’s recruitment processes. recruitment agencies - recruit workers, sponsor
These intermediaries are often fundamental to their visas as employers and subcontract their
Nepali workers’ decisions to migrate. They often workforce onto construction and other worksites
deceive prospective migrant workers over the temporarily to help other companies with short-
terms and conditions of employment abroad and time labour shortages. Some non-legal standards
negotiate recruitment fee payments. Despite this, developed by major parastatal contractors apply
many migrants trust unlicensed agents in their more comprehensive authorisation processes than
communities more than they trust licensed agencies the existing state licensing scheme for recruitment
in Kathmandu. Elements of Nepal’s licensing system agencies. At the time of writing, there was no
that prioritise the mobilisation of large numbers of publicly available register of recruitment agencies
workers for foreign jobs make it difficult for ethical in Qatar where workers and others could verify the
business models of recruitment to thrive. legitimacy of agencies and placement offers.
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 69• Make public the reasons for blacklisting and
Recommendations to the Philippine suspension of recruitment agencies, and on the
numbers and outcomes of inspections of each
government:
agency. Coordinate pro-actively with country
• Institute an ethical recruitment framework into of origin embassies to share information about
licensing and regulatory machinery such that abusive employers and to ban employers and
prospective or existing recruitment agencies recruiters (local and overseas) from hiring or
need to demonstrate compliance with ethical recruiting in future if they have been found to have
recruitment principles, and for this compliance abused migrant workers.
to be verified and audited by an independent
third-party; consider the introduction of incentives
• Consider the introduction of special licensing
for agencies who can genuinely demonstrate due
requirements for “labour supply companies”,
diligence, commitment to zero-fee recruitment
given the high risk workers employed by
and a duty of care for migrant workers.
such firms can be exposed to, and their close
• Introduce legislation to make licensed labour involvement in the recruitment process.
recruiters liable for the actions of any unlicensed
partners and intermediaries in Nepal. • Amend the law to hold employers and recruitment
agents jointly liable for actions of third party
• Remove regulations that require agencies to intermediaries, including outside Kuwait, in
secure jobs for a minimum number of workers connection to the recruitment of migrant workers.
each year.
• Permanently ban from directing, owning or
• Make public the reasons for the blacklisting and
being employed by recruitment agencies any
suspension of recruitment agencies, and on the
individual found to have offered or accepted
numbers and outcomes of inspections of each
bribes, “kickbacks” or other form of illegal benefit
agency.
in connection with visa allocation and labour
• Permanently ban from directing, owning or recruitment.
being employed by recruitment agencies any
individual found to have offered bribes or other
form of illegal benefit to government officials in Recommendations to the Government of
connection with labour recruitment.
Qatar:
• Institute, through amendments to Ministerial
Recommendations to the Government of Decision 18 of 2005, an ethical recruitment
Kuwait: framework into licensing and regulatory
machinery such that prospective or existing
• Institute an ethical recruitment framework into recruitment agencies need to demonstrate
licensing and regulatory machinery such that compliance with ethical recruitment principles,
prospective or existing recruitment agencies and for this compliance to be verified and
- covering all recruitment of migrant workers to audited by an independent third-party; consider
Kuwait, including domestic workers and others the introduction of incentives for agencies
employees in private households - need to who can genuinely demonstrate due diligence,
demonstrate compliance with ethical recruitment commitment to zero-fee recruitment and a duty of
principles, and for this compliance to be verified care for migrant workers.
and audited by an independent third-party;
consider the introduction of incentives for • Make public the reasons for blacklisting and
agencies who can genuinely demonstrate due suspension of recruitment agencies, and on the
diligence, commitment to zero-fee recruitment numbers and outcomes of inspections of each
and a duty of care for migrant workers. agency. Coordinate pro-actively with country
70 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3of origin embassies to share information about labour approvals issued by the DOFE, equivalent to 9000
abusive employers and to ban employers and workers per year.387
recruiters (local and overseas) from hiring or
recruiting in future if they have been found to have Most overseas migration from Nepal, including to the
abused migrant workers. Gulf, is facilitated by private recruitment agencies
operating under Nepal’s licensing, registration and
• Consider the introduction of special licensing certification schemes derived from the 2007 FEA,388
requirements for “labour supply companies”, its 2008 implementing rules (FER),389 and subsequent
given the high risk workers employed by
amendments. Since 2012, when the Nepali authorities
such firms can be exposed to, and their close
introduced new regulations to regularize the securing
involvement in the recruitment process.
of individual labour permit approvals, the number of
labour permits issued to individuals applying on their own
• Amend the law to hold employers and recruitment
decreased significantly.390 As of September 2020 there
agents jointly liable for actions of third party
were 954 agencies licensed by DOFE to operate foreign
intermediaries, including outside Qatar, in
employment businesses, of which 833 were active, 21
connection to the recruitment of migrant workers.
were inactive and 100 had been blocked (or blacklisted).391
• Permanently ban from directing, owning or Under Section 10 and 11 of the FEA, recruiting agencies
being employed by recruitment agencies any must obtain a licence from DOFE before they can place
individual found to have offered or accepted Nepali workers in overseas jobs, making it illegal to place
bribes, “kickbacks” or other form of illegal benefit workers overseas without this licence.
in connection with visa allocation and labour
recruitment. Recruitment agencies are private entities which must
be registered at the Company Registrar’s Office under
Nepal’s “Companies Act”, and they must obtain a licence
to recruit for overseas work from the DOFE.392 In order to
4.1 Is the system comprehensive? Does it secure a licence, recruitment agencies have to submit
apply to recruitment for all kinds of work? a business plan, evidence that the agency director has
at least two years of experience in foreign employment,
Nepal and pay a NPR 3,000,000 (25, 550 USD) deposit and a
NPR 20,000 (165 USD) licence fee. As of 2019, agencies
Nepal has a complex and highly centralized licensing had to facilitate labour migration for at least 100 workers
operation for recruitment agencies. The central a year in order to maintain their licence. Any failure to
involvement of informal, unregistered local actors, do so for two consecutive years automatically results in
upon whom licensed recruitment agents in Kathmandu the cancellation of their licence.393 This requirement was
rely, means that the system cannot be regarded as waived in 2020 during the Covid-19 pandemic.394
comprehensive given that many integral actors operate
outside of the licensing scheme. Deposits must also be lodged with DOFE according to
the intended number of workers the agency intends
Nepalis require labour approval from DOFE to to send abroad annually. These were increased
migrate overseas for work. It is not mandatory to use dramatically in 2019 following an amendment to the
a recruitment agent to secure work abroad - labour FEA, which aimed to reduce the number of agencies. To
approvals can also be obtained individually. This type send up to 3000 workers abroad per year, a cash deposit
of recruitment accounts for approximately 10% of total of 5 million NPR (41,780 USD) is required in addition to
387. MOLESS, “Nepal Labour Migration Report 2020”, (2020): 22 and 26.
388. Foreign Employment Act, 2007
389. Foreign Employment Rules, 2008
390. Department of Foreign Employment, “Labour Migration for Employment A Status Report for Nepal: 2013/2014”, (2014): 20.
391. DoFE, “Recruitment Agency”
392. Foreign Employment Rules, 2008, Rule 6(1) (f).
393. 2019 amendment to the 2007 Foreign Employment Act. See MOLESS, “Nepal Labour Migration Report 2020”, (2020): 52 a
394. Nepali Times, “Brokers going for broke, Nepal government and fairer recruiters need to join forces for post-pandemic foreign employment revamp”, (20 July 2020).
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 71a 15 million NPR (125,335 USD) bank guarantee. To send support.400 They can include respected members
between 3000 - 5000 workers a deposit of 10 million of the community such as teachers or political
NPR (83,573 USD) is expected as well as a 30 million NPR party representatives, or neighbours, relatives and
(250,720) bank guarantee, and to send more than 5000 acquaintances.401 Workers repeatedly described to
workers annually recruitment agencies must provide us how these intermediaries were fundamental to
a deposit of 20 million NPR (167,146 USD) in addition their decisions to migrate, explaining their terms and
to a 40 million NPR (334,314 USD) bank guarantee.395 conditions and negotiating recruitment fee payments.402
The recruitment agency is required to disclose to DOFE Despite widespread deception and often higher fees
details of the type of foreign employment, the number than those charged by agencies, many migrants prefer
of workers they deploy, as well as details of workers’ to deal with sub-agents because of the ease of access
salaries, working hours and annual leave and a range of and their personal connections to these actors.403 A
other details as prescribed in the FEA. The 2008 Rules Nepal-based recruitment expert told us that sub-agents
require prospective licensees to demonstrate they have and unlicensed brokers can “insert themselves into the
not been convicted of any criminal offense “involving recruitment chain very effectively”, noting that the DOFE
moral turpitude,” nor been the director of an agency requirement that all overseas vacancies be published in
whose license was cancelled. the newspapers gives unlicensed agents leverage with
job-seekers in rural locations who are unable to access
Most licensed recruitment agencies are headquartered newspaper advertisements themselves.404
in Kathmandu. While the FEA allows them to open
branch offices outside the capital with DOFE permission, Whilst recognising that many sub-agents often resorted
the licensing of regional branches has effectively to fraud and deception, a recruitment agent told us that
been halted since 2012 due to openings of branch agencies do not always have the financial resources to
offices by recruitment agencies without the necessary open branch offices, and that they would likely pass any
approvals. A 2014 OSF report recorded only 47 branch additional administrative costs onto workers. He also
offices belonging to 35 recruitment agencies had been said that agencies would continue to rely on sub-agents
approved,396 while the 2020 MOLESS Labour Migration for their knowledge of, and access to, communities to
report listed only 38 branch offices belonging to 24 find potential recruits, and that regularising the status
recruitment agencies in operation.397 The federal of sub-agents would have been far more beneficial
government is now encouraging agencies to open for both the recruitment agency and migrant workers
branches in more provinces.398 themselves:
The concentration of recruitment agents in Kathmandu “Sub-agents were people that the community
and other major cities means both licensed agencies had trusted. If something goes wrong, they
and aspiring migrants across Nepal, particularly in know where to go and who to catch. These
remote villages, use the services of intermediaries in communities trusted sub-agents more than
the form of individual local ‘agents’, ‘sub-agents’ and manpower agencies, so some [sub-agents]
‘brokers’, the vast majority of whom are unlicensed.399 were taking advantage of this situation. But
More often than not, these intermediaries are a as a solution, we’ve been proposing to the
migrant’s first point of contact in the labour migration government to regulate sub-agents by providing
process and most likely the person arranging travel them independent licenses and getting them
documents and providing administrative and logistical registered with the District Administration Office.
395. Foreign Employment Act (new amendment), Section 10 and 11, and Foreign Employment Rules, Rule 6. See MOLESS, “Nepal Labour Migration Report 2020”,
(2020): 52.
396. Sarah Paoletti, Eleanor Taylor-Nicholson, Bandita Sijapati and Bassina Farbenblum, “Migrant Workers’ Access to Justice at Home: Nepal”, Open Society
Foundation, (2014): 53-55.
397. MOLESS, Nepal Labour Migration Report 2020, Table 6, (March 2020): 48
398. The Kathmandu Post, Recruiting agencies and foreign employment bodies resolve conflicting issues, 19 February 2021
399. Verité, “Labor Brokerage and Trafficking of Nepali Migrant Workers”, (November 2016): 29.
400. ILO and GiZ, “Analysis of Labour Market and Migration Trends in Nepal”, (2015): 66 (check latest file in Nepali here.)
401. Migrant Forum in Asia and CIMS Kerala, “A documentary on the role of sub-agents in the recruitment of migrant workers”.
402. Interviews between November 2019 - September 2020 with Nepali migrant workers.
403. Migrant Forum in Asia and CIMS Kerala, “A documentary on the role of sub-agents in the recruitment of migrant workers”.
404. Written comments from Andy Hall, May 2021
72 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3It would then be the government and not the Kuwait
manpower agencies that would need to hold
sub-agents accountable for any misdeeds. Kuwait does not have a specific private sector
Instead, the government evaded its responsibility recruitment industry licensing and certification scheme,
and added an extra burden on manpower except in relation to domestic workers.412 This reflects the
agencies.”405 fact that recruitment agencies are commonly used for
the recruitment of domestic workers. Migrants working
Until 2019, the 2007 FEA and the accompanying 2008 in other areas of the private sector are typically recruited
FER allowed licensed recruitment agencies to register directly by companies’ human resources departments in
up to ten sub-agents each, while requiring sub-agents to collaboration with agencies in countries of origin.413
only register with one agency. The recruitment agency
was liable for any actions by the agent, who were The 2015 Domestic Worker Law outlines a number
required to be able to read and write Nepali fluently, be of conditions that have to be met for the issuance or
able to “explain foreign employment related matters renewal of a license. License-holders must be Kuwaiti
to others,” and have no criminal history.406 However, nationals with a history of good conduct and good
following a 2019 amendment to the FEA, which sought reputation. No criteria are provided other than not
to regulate the licensing scheme further, recruitment having been convicted of a felony or a crime involving
agencies are no longer allowed to hire sub-agents and a “breach of integrity or honour”, for which they have
instead must establish branch offices.407 According to not been pardoned. Prospective licensees must submit
Section 43, unregistered actors involved in overseas a letter of guarantee from a local bank. The amount of
labour recruitment can face fines ranging from 300,000 the guarantee is determined by the Minister of Interior.
(USD 2,500) to 500,000 (USD 4,300) Nepalese rupees and Employment of domestic workers without a state license
a jail term of between three and seven years.408 is explicitly outlawed by Article 3. Recruiters who work
without a license can face criminal penalties of up to
However, the FEA does not provide for sanctions for three years in prison and a fine of KWD10,000 (USD
private recruitment agencies that use unregistered 33,195), according to article 48. Repeat offenders can
agents or sub-agents. The cost associated with formal face six years in prison and a KWD20,000 (USD 66,391)
registration and the absence of any real deterrent for fine. Recruitment licenses can be revoked for up to three
the use of unregistered agents in part explains why there months if the employer is found guilty of subcontracting
were very few local agents registered with DOFE by to work in another home or deceiving workers during the
recruitment agencies. Nepal’s licensing and registration recruitment process, and permanently suspended if they
scheme only recognises 954 authorised private repeat the offence.
recruiters, whereas an ILO study estimated that there
were approximately 50,000 unregistered agents active Other employers have to secure permission to recruit
in Nepal’s recruitment industry in 2017.409 According to a certain number of workers from the Public Authority
a 2019 Nepal National Human Rights Committee report, for Manpower (PAM), before applying for work permits.
unlicensed agents continue to operate freely despite the In order to recruit foreign workers for the private sector,
reform of the FEA; their number is estimated at about companies must secure an annual approval from PAM
60,000.410 Recruitment agencies interviewed in 2014 for for the number of workers they will recruit. PAM can
an OSF report all said they worked with between 20 and reject the request, or part-approve it, if an employers’
50 individual agents at any one time.411 plans are considered to be inconsistent with their needs
405. Kumud Khanal, Fusion International Private Limited and Co-founder of Ethics Practitioners Association of Nepal (EPAN), remote interview, 27 November 2020.
406. Foreign Employment Act, Section 74(2), 2007; Foreign Employment Rules, s48, 2008. IOM, “Recruitment monitoring and migrant welfare assistance. What
works?”, (2015): 49-50.
407. MOLESS, “Nepal Labour Migration Report 2020”, (2020): 52.
408. Foreign Employment Act, 2007, Article 43, Chapter 9, 2007.
409. ILO, “The Migrant Recruitment Industry: Profitability and unethical business practices in Nepal, Paraguay and Kenya”, (2017): 3
410. National Human Rights Commission, Research-Report on The Situation of the Rights of Migrant Workers, (2019): 82.
411. Sarah Paoletti, Eleanor Taylor-Nicholson, Bandita Sijapati and Bassina Farbenblum, “Migrant Workers’ access to justice at home: Nepal”, Open Society
Foundations, (2014): 54-55.
412. Building Responsibly, DLA Piper and ILO, Labor Law Factsheet: Kuwait, (August 2019): 1.2.
413. Interviews with NGOs, IOM and diplomatic missions in Kuwait, October-November 2020.
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 73based on the size of their operations or businesses. Once law includes a series of procedural templates, including
their manpower request has been approved, employers a licence application form and a model contract for
are required to obtain a license from the Ministry of employers.418
Interior in order to recruit migrant workers, and provide
evidence that a Kuwaiti worker could not do the job.414 The Ministry can revoke a recruitment agency’s licence
if the license-holder fails to comply with any of the
The enhanced regulation for domestic worker conditions required to obtain the licence, receives any
recruitment agencies may in part reflect disquiet on money or other form of remuneration from a foreign
the part of Kuwaiti employers that agencies exploit worker in return for their recruitment, presents false
them and charge exorbitant and unreasonable fees. information or documentation, or is responsible for
An ILO study on the attitudes of employers found that “habitual violation of contracts” with employers.419 In
“there was consensus that the agencies needed to be 2015 the government reported that it had cancelled 15
regulated”.415 agency licences out of 282 in the previous year, mainly
for providing incorrect information, not complying
with requirements, violating the labour law or failing to
Qatar correct mistakes after receiving warnings.420 Enforcement
actions publicly highlighted by the authorities include
Qatar’s recruitment agency licensing system covers cases of domestic worker recruitment agencies who
recruitment for all kinds of work, but there are few have failed to honour agreements with employers.421
requirements specified in relation to fair recruitment,
and the licensing regime does not specifically address The licensing framework does not specifically
the risks related to labour supply companies, which address the activities of so-called “labour supply”
(working with partner recruitment agents) recruit, or “manpower” companies, which directly recruit
employ and subcontract migrant workers. Some non- workers and sponsor their visas as employers, and then
legal standards developed by parastatal entities apply subcontract their workforce onto construction and
more comprehensive authorisation processes than the other worksites temporarily to help other companies
state licensing scheme for recruitment agencies. with short-time labour shortages. These companies
generally have a “recruitment arm”- a licensed agency
ADLSA is responsible for the administration of that brings workers into the country. Temporary work in
recruitment agencies and its Permanent Recruitment the construction sector generally carries a heightened
Committee provides the final approval for applications. risk of labour exploitation. Some Qatari employers told
The committee also conducts periodic inspections of us they prefer where possible to source workers this
recruitment agencies and is responsible for investigating way, particularly for roles which do not require specialist
complaints.416 skills. One construction manager told us that for a major
hotel project, “we got the less skilled workers from a
Ministerial Decision No. 8 of 2005 specifies that an local agent in Qatar, whom we paid by the day, and got
applicant for a license to recruit foreign workers must the more skilled workers directly from Nepal through
be a Qatari citizen, have a physical office and a full-time an agent there.”422 A 2014 Qatar Foundation study found
manager, and they must provide a bank guarantee that the use of these labour supply agencies “increases
of 250,000 Qatari Riyals (USD 68,662) to the Ministry the costs of migration and migration recruitment
of Labour. Applicants with criminal convictions are because they are another layer of middlemen taking
disqualified unless they have been “rehabilitated”.417 The commissions between the recruitment agency in
414. Government of Kuwait, Ministerial Decision No. 200 of 2011 Regulating Employment in the Private Sector
415. ILO, Employers’ perspectives towards domestic workers in Kuwait A qualitative study on attitudes, working conditions and the employment relationship,
(2015): 3.4.1
416. Government of Qatar, Ministry of Administrative Development, Labour and Social Affairs, “Annual Report”, (2016): 24.
417. Ministerial Decision No. 8 of 2005 Regarding the Conditions and Procedures for Obtaining a License to Recruit Foreign Workers for Others, Article 2.
418. Ministerial Decision No. 8 of 2005 Regarding the Conditions and Procedures for Obtaining a License to Recruit Foreign Workers for Others,, Annex.
419. Ministerial Decision No. 8 of 2005 Regarding the Conditions and Procedures for Obtaining a License to Recruit Foreign Workers for Others,, Article 14.
420. The Peninsula, “Licences of 15 manpower agencies cancelled”, (16 October 2015).
421. Gulf Times, Ministry cancels licences of two recruitment agencies, (22 June 2016).
422. Remote interview with contractor involved in the construction of a hotel in Doha, July 2020.
74 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3the sending country and the ultimate employer in of a recruitment agency which is registered and licensed
Qatar”.423 The owner of a retail services company that by the competent authority of the jurisdiction in which
uses labour supply companies in Qatar told us he did the agency operates and that does not charge workers
so because it is cheaper than recruiting directly from any recruitment and processing fees or placement
overseas. In relation to due diligence on the recruitment fees.428 The prohibition on the payment of recruitment
of workers he subcontracted, he told us: “we monitor or placement fees is understood to cover the payment of
their work to make sure they are bringing us the right charges to both local and overseas agencies, which goes
people for the jobs we need done, and that they are further than the wording of Qatari law (which focuses on
sticking to our agreed schedule. That is it.”424 Neither payments within Qatar).429 Furthermore, QF’s Standards
labour supply companies nor their partner recruitment expect all contracts with local and overseas agencies
agencies are subjected to any specific or additional to have explicit contractual stipulations prohibiting the
regulatory scrutiny, despite the known risks to those prohibition of payment of recruitment and processing
employed by them. Similarly, trading companies, fees, and all costs to be listed in the contracts, in order to
which are often established by both Qatari and foreign secure approval to supply workers to QF projects.430 The
nationals to procure work visas that they then sell Supreme Committee for Delivery and Legacy has put in
directly to migrants as “free visas” (see section 1.5), place similar requirements for contractors operating on
are not subjected to any additional scrutiny than its projects.431
other companies, even though one expert told us that,
“they effectively act as recruitment agencies or their
intermediaries.425
4.2 Is the licensing / registration system
In 2014 international law firm DLA Piper, in a
transparent and accessible? Can workers
government-commissioned report into allegations and other interested parties use this
of migrant worker abuses, recommended that the system to verify the legitimacy of
government introduce “a comprehensive vetting recruitment agencies and placement
process” for recruitment agency licensing, require agents offers?
to provide ethical recruitment certification in respect
of any foreign recruitment agent or broker used,426 and Nepal
to blacklist foreign (as well as domestic) recruitment
agents found to engage in unethical practices.427 In 2021, The scale of informality in the overseas labour
the government informed us in a written response that recruitment industry in Nepal presents a major obstacle
29 agencies had had their licences removed for violating to transparency. The vast majority of local agents and
the laws, without providing further details. brokers are neither licensed nor registered, although
Nepal has invested in the establishment of information
Some contractual standards developed by major systems to digitize and centralise a number of labour
parastatal entities apply more comprehensive recruitment processes involving licensed recruitment
authorisation processes than the existing state agencies.
licensing scheme for recruitment agencies. The Qatar
Foundation’s (QF) Worker Welfare Standards include On the DOFE website it is possible to search a licensed
a requirement for due diligence before a recruitment recruitment agencies database to find the details
agency can be authorized to supply workers to QF of active, inactive, suspended and blacklisted (or
contractors and sub-contractors. QF contractors and “blocked”) recruitment agencies.432 Some blacklisted
sub-contractors are only permitted to use the services agency entries include the name of the proprietor, as
423. Professor Ray Jureidini, “Migrant Labour Recruitment to Qatar: Report for Qatar Foundation Migrant Worker Welfare Initiative”, Qatar Foundation, (2014): 62.
424. Remote interview with owner of retail service company, July 2020.
425. Professor Ray Jureidini, written comments, October 2020.
426. DLA Piper, Migrant Labour In The Construction Sector In The State Of Qatar, (May 2014): 41.
427. DLA Piper, Migrant Labour In The Construction Sector In The State Of Qatar, (May 2014): 41.
428. Qatar Foundation, Mandatory Standards of Migrant Workers’ Welfare for Contractors & Sub-Contractors, (20 April 2013): 11.2.1.
429. Qatar Foundation, Mandatory Standards of Migrant Workers’ Welfare for Contractors & Sub-Contractors, (20 April 2013): 11.2.3.
430. Qatar Foundation, Mandatory Standards of Migrant Workers’ Welfare for Contractors & Sub-Contractors, (20 April 2013): 11.2.4.
431. Supreme Committee for Delivery & Legacy’s Workers’ Welfare Standards, (2018): 16-17
432. Government of Nepal, DOFE, Recruitment Agency Database
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 75well as the office address and contact number. However, in which people planning to hire a domestic worker
some entries are incomplete, and there is no further are encouraged to seek the advice of local embassies
information regarding the quality of the operation and “for more information for trusted agencies and the
services provided, nor the reason for their blacklisting. legal process of hiring a domestic worker through
them”, or to visit the Department of Domestic Labour
In September 2018 the Nepali government launched the in Kuwait if in doubt about a particular agency and its
Foreign Employment Information Management System practices.436 Similarly, civil society organisation Project
(FEIMS), an integrated migration management system 189 established a project ‘Social Accountability for
(see 5.1). The online system and mobile phone app Recruitment Agencies’ aiming to encourage domestic
is a centralized database for departing, overseas and worker recruitment agencies in Kuwait to attain the
returning Nepali migrant workers via which they can SA8000® social regulation standard.437
access all migration departments and services. MOLESS
stated in its 2020 report that “by bringing all migration-
related stakeholders to the same platform … FEIMS has
Qatar
increased transparency, efficiency and effectiveness
The relevant laws, Ministerial Decisions and model
of the related services including minimizing potential
licensing application forms are easily accessible on the
ill-practices”.433 Labour migration experts and CSOs
ADLSA website.438 These include the forms to register as
interviewed for this report said that the FEIMS was an
a recruitment agency439 and to renew a license,440 and a
effective and much-needed initiative, which is likely
standard contract between employers and recruitment
to increase transparency in the licensing system and
agencies.441
migration process, although they expressed concern that
it is not accessible to the many migrant workers who
At the time of writing in June 2021 there was no central
lack digital literacy skills and may not speak Nepali.
register of recruitment agencies in Qatar where workers
and others can verify the legitimacy of agencies and
placement offers and no requirement for any such
Kuwait register in law. The government occasionally reports on
enforcement actions relating to recruitment agencies.
There is no transparent process for monitoring the For example, in May 2020 the English-language
legal status and practice of recruitment agencies, nor newspaper The Peninsula reported that ADLSA
a publicly available database of licensed agencies. An had cancelled the licence of Distinction Manpower
interviewee working with the UN estimated that the Recruitment because it had not honoured labour
number surpasses 120.434 The government provides contracts with clients and had issued labour contracts
sporadic information about recruitment agency without the Ministry’s authentication.442 In 2012 it was
malpractice. An Arab Times report from February 2020 reported that the government graded domestic worker
highlighted a PAM campaign in which stickers were recruitment agencies into grades A, B and C. However,
posted on the offices of recruitment agents which had the criteria by which the agencies were rated and the
been suspended as a result of malpractice.435 names of the PRAs were never published and there
has been no further update to this announcement.443
To address this gap, Migrant-Rights.Org prepared a 2019 A labour specialist based in Doha confirmed that this
guide for prospective employers of domestic workers grading system appears to effectively be defunct.444
433. MOLESS, “Nepal Labour Migration Report 2020”, (2020): 55
434. Remote interview with UN agency representative, 12 October 2020.
435. Arab Times Online, Domestic labor offices must abide by Law No. 68/2015 to avoid temporary closure, Arab Times Online, (2 February 2020).
436. Migrant-Rights.org and Project Bridges, Your Guide to Employing a Migrant Domestic Worker in Kuwait, (March 2019): 3.
437. Project-189, SARA – Social Accountability for Recruitment Agencies,
438. Government of Qatar, “E-Services & E-Forms”.
439. Government of Qatar, “Application for a Recruitment License of Expatriate Workers for a Third Party”.
440. Government of Qatar, “Application for Renewal of Replacement of – Damaged - Lost License for Recruitment of Expatriate Workers for Third Party”.
441. Government of Qatar, “Contract of recruiting workers from abroad for a third party”.
442. The Peninsula, “Ministry cancels license of manpower recruitment agency for violations”, (18 May 2020).
443. IOM, “Recruitment Monitoring & Migrant Welfare Assistance: What Works?”, (2015): 76.
444. Remote interview with Doha-based labour specialist (name withheld), September 2020.
76 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3policy-making processes, but that there is a growing
grievance amongst migrant groups, CSOs, and networks
4.3 Are worker and recruiter
that they are not consulted in either policy design or
organisations consulted on the design
implementation activities.449 A lawyer at People Forum
and implementation of these schemes?
told us that the government consults CSOs as a formality
but “is not actually taking their opinion into account”.450
Nepal
A MOLESS representative told us that the government
Kuwait
consults with recruitment agents and regards them as
key stakeholders. He said that, “we cannot address all
Kuwait has an active and sometimes outspoken trade
of their concerns, but we do hear from them as well”.
organisation representing domestic worker recruitment
He did not mention consultation with worker groups or
agencies, and a national trade union federation which
trade unions but said that “policies are largely drafted
contributed to the drafting of the 2015 domestic worker
keeping [the] public’s welfare in mind”.445
law that established licensing systems for agencies.
A representative of EPAN, a Kathmandu recruitment
The Kuwait Union of Domestic Labor Offices (KUDLO),
agency specialising in ethical recruitment, told us that
the trade organisation for recruiters in Kuwait,
“agencies are not consulted during these [licensing]
regularly comments publicly on regulation, including
discussions,” that NGOs and INGOs had more influence,
making calls on the government to reduce regulatory
and that the government merely invites agencies to
and financial burdens on recruitment agencies.451 Its
discuss new laws after drafts are completed, then
formal role in consultations over laws and policies is
claims this was consultation.446 A representative from
unclear. A representative of the Al-Durra public-private
the National Network for Safer Migration agreed that
the government consulted poorly on the licensing recruitment agency, established by the government, told
and registration scheme with the private recruitment us it was heavily involved in discussions about capping
industry, pointing to arbitrary amendments as fees charged by domestic worker agencies, which Al
evidence of a lack of meaningful consultation between Durra and the government believed were too high for
the government and the recruitment industry, and employers.452
said that this resulted in opaque lobbying by agency
organisations, that in turn generated media criticism.447 The Kuwait Trade Union Federation (KTUF), which does
not allow migrant workers to join unless their company
According to an ILO official, the authorities did not has a union, was involved in submitting drafts of the
conduct sufficient stakeholder consultations, nor did 2015 domestic workers law that established an agency
they test the likely impact of their policies prior to licensing system, but a KTUF representative told us
introducing the 2019 amendment to the FEA, which that there is no ongoing formal dialogue available to
cancelled recruitment agencies’ ability to hire sub- the KTUF to propose improvements to the recruitment
agents, and introduced new licensing requirements by licensing system.453
increasing the deposit that agencies must pay and a
minimum number of workers they must send for foreign
employment every year.448 Qatar
A CESLAM representative told us that some select Qatar’s licensing scheme has not been amended since
trade unions have been heavily involved in domestic 2005. Local recruitment agencies participating in ethical
445. Interview with senior official at Ministry of Labour, Employment and Social Security, Kathmandu, 8 January 2020.
446. Kumud Khanal, Fusion International Private Limited and Co-founder of Ethics Practitioners Association of Nepal (EPAN), remote interview, 9 June 2020.
447. Mr. Nilambar Badal, Policy and Campaign Coordinator at National Network for Safer Migration (NNSM), interview, 13 December 2019.
448. ILO official in Nepal, remote interview, 21 October 2020.
449. Dr Jeevan Baniya, Assistant Director of Centre for the Study of Labour and Mobility at Social Science, remote interview, 8 June 2020.
450. Krishna Neupane, People’s Forum, remote interview, 5 June 2020.
451. See for example Arab Times Online, “Union slams MoCI decision to ‘cut’ maid’s recruitment cost”, (7 February 2021)
452. Senior representative of Al-Durra, remote interview, February 2020.
453. Interview with General Secretary of the Kuwait Trade Union Federation, December 2019.
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 77recruitment pilots have been invited to participate in workers overwhelmingly migrate to a small number of
Chamber of Commerce and ADLSA arranged events states where employers and recruiters generally expect
about business and migration in recent years, but there not to pay appropriate professional service fees (see 6.1).
is no indication that these discussions have directly
addressed licensing schemes.454 One migrant labour expert based in Kathmandu told us
that the government’s “weak monitoring mechanism
Civil society in Qatar is tightly controlled and usually impedes fair and ethical recruitment processes”, arguing
government affiliated. For example, all board members that DOFE does not have enough capacity to regulate
of the Qatar Charity are former public officials.455 No and investigate illegal activities by agencies.459 This
trade unions exist in Qatar, and if they did migrant impunity disincentivises recruiters from complying with
workers would be legally prohibited from joining as laws and regulations that may add to their costs. A 2017
members. Therefore the only avenue for worker group ILO report found that “the international recruitment
input on licensing schemes would be via international industry in Nepal flourishes from non-compliance with
worker groups and organisations. However, recruitment
the law, making the costs higher and the business more
agency licensing reform has not yet featured in the
challenging for those who do comply with the law. Those
ILO technical cooperation partnership with the Qatari
who invest in better practices find themselves having to
government.456
offer higher prices to overseas clients.”460
Recruiters and labour migration experts told us that the
4.4 Does the government put in place government requirement that agencies mobilise at least
measures that incentivise ethical 100 workers per year, or lose their license, serves as a
clear disincentive to ethical recruitment, and makes it
recruitment practices?
impossible for agencies to focus on work with employers
Nepal to ensure the fair treatment of a smaller number of
workers. Agencies whose licences are cancelled for not
The government has stated as part of collaboration finding work for enough workers cannot recover their
programmes with the IOM that it is committed to work deposit for three years, which increases the pressure
with civil society, the private sector and the international on them to meet this 100 worker target. “This is in a
community to promote ethical recruitment.457 It has way stimulating human trafficking,” one agency told us,
participated in a pilot programme of the IOM’s IRIS “Agencies will take any demands and send workers to
ethical recruitment certification scheme,458 and has any categories of job without any inquiries, or further
attempted to tighten regulation, including through scrutiny.”461 As the ILO said in a 2017 study “international
a demand attestation process described in more recruitment in Nepal is a high-volume, low margin and
detail in section 6.4. Despite this, the reality is that exploitative business”.462 An ILO official told us that the
recruitment agencies do not currently have any huge increase in the sums of money that agencies now
strong incentives to operate ethically in Nepal. Ethical have to make in deposits (see 4.1) failed to consider the
business models are undermined by a combination potential impact of this new licencing requirement:
of poor government enforcement (see section 5) and
regulations that incentivize companies to prioritise the “The main aim was to decrease the number
number of workers they recruit for work, rather than of agencies, and the amendment achieved
their conditions. This is all in a context in which Nepali this reduction. But it failed to consider how
454. Qatar Chamber, “Qatar Chamber hosts seminar to raise awareness on Visa Centres”, (2 October 2018); Qatar Chamber, “Labour Law Reforms in Qatar:
Challenges and Opportunities for Business”, (17-18 October 2018); Qatar Chamber, “Business and migration: Strengthening dialogue between the private sector
and governments”, (1 October 2019).
455. Qatar Charity, “Board of Directors”
456. ILO, “Annual progress report on the technical cooperation programme agreed between the Government of Qatar and the ILO”, GB.340/INS/11, (9 October 2020)
457. IOM, “Ethical Recruitment Can Protect Rights of Nepali Migrant Workers”, (25 October 2019).
458. IOM, “Iris Pilot Testing”
459. Interview with Rameshwar Nepal, Equidem Research & Consulting, 3 January 2020.
460. ILO, “The Migrant Recruitment Industry: Profitability and unethical business practices in Nepal, Paraguay and Kenya”, (2017): 29
461. Kumud Khanal, Fusion International Private Limited and Co-founder of Ethics Practitioners Association of Nepal (EPAN), remote interview, 9 June 2020.
462. ILO, “The Migrant Recruitment Industry: Profitability and unethical business practices in Nepal, Paraguay and Kenya”, (2017): 29
78 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3agencies would fulfil this requirement and most recruitment agencies to either comply or to “go beyond
importantly, if they take loans to fulfil this, in compliance” and adopt ethical practices.467
the long run who will take the brunt? So in a
way, this can be seen as a hindrance to ethical
recruitment. Our concern is that this cost will Kuwait
be passed on to migrant workers in order to
reimburse it.”463 There are no obvious incentives for recruiters and
employers to operate ethically in Kuwait. It is not
In July 2020 in the midst of the Covid-19 pandemic, illegal for agencies to charge workers recruitment fees,
which hugely stifled demand for new migrant worker meaning that any company deciding to take steps
contracts, the government waived the 100 worker to eliminate fees would place itself at a commercial
rule. According to a senior DOFE official quoted in the disadvantage.
Nepali Times, unless it had taken this step the licenses
of 536 of the 854 registered recruiters would have been Kuwait’s 2018-2020 Decent Work Programme with the
scrapped.464 ILO included an objective for “pursuing demonstration
effect of fair recruitment corridors” by establishing
two pilot studies to effectively make the business
The fact that the vast majority of Nepal’s migrant
case for ethical recruitment, “generat[ing] important
workers go to a small number of countries with weak
demonstration effects supporting the case for enhanced
and exploitative labour systems further disincentivises
governance of foreign labour internally.”468 There is as
ethical behaviour. As one journalist specialising in labour
yet no information available on the progress of these
put it in a 2020 analysis of the industry, “recruiters are
two pilot studies.
embroiled in fierce, unhealthy competition among
themselves as they vie for the limited jobs in common
destinations”.465 This is exacerbated by stiff competition
Qatar
from other origin states. The ILO found in 2017 that
Nepali agencies had to use unethical practices to win
There are multiple ethical recruitment initiatives in
such contracts: “Interviewees reported also paying
Qatar, though these are predominantly parastatal /
bribes to clients (placement agencies and employers).
private sector initiatives linked to high-profile projects
This occurs when there are several recruitment firms in such as the 2022 World Cup (see 6.1) or pilot projects
Nepal competing for the same job order and recruiters under the ADLSA/ILO partnership.
must “bid” to “win” the contract. In effect, this is a bribe
paid to companies, and those that pay the most are In 2018 NYU Stern partnered with the ILO Qatar office
granted the contract. Firms in Nepal reported recovering and a number of major state-owned government
the amounts paid out in this way through charging contractors to evaluate the impacts of incorporating
additional recruitment fees to recruits.466 migrant labour costs into construction and engineering
project bidding processes. The pilot study concluded
Katherine Jones, an academic specializing in that fair recruitment, if factored into initial project
recruitment, conducted an IOM study of the regulatory budgets, cost less than 1% of project bids.469 The ILO
frameworks of Colombo process governments and has also conducted an ethical recruitment pilot with
noted that they are predominantly based on penalising QDVC and ethical recruiters based in Qatar (STS Qatar)
businesses which do not comply. However almost and Bangladesh (Bonanza Recruitment).470 As there
no incentives for fair recruitment are provided within is no requirement from the government to include
national legal and policy frameworks for private recruitment costs in contracting chains, such pilot
463. ILO Nepal official, remote interview, 21 October 2020,
464. Nepali Times, “Brokers going for broke, Nepal government and fairer recruiters need to join forces for post-pandemic foreign employment revamp”, (20 July 2020).
465. Nepali Times, “Brokers going for broke, Nepal government and fairer recruiters need to join forces for post-pandemic foreign employment revamp”, (20 July 2020).
466. ILO, “The Migrant Recruitment Industry: Profitability and unethical business practices in Nepal, Paraguay and Kenya”, (2017).
467. IOM, “Recruitment monitoring and migrant welfare assistance. What works?”, (2015): 8.
468. ILO, “The Kuwait Decent Work Country Programme (2018-2020)”, (2018).
469. NYU Stern Center for Business and Human Rights, “Less than One Percent: Low-Cost Responsible Recruitment in Qatar’s Construction Sector”, (2019).
470. BWI–VINCI–QDVC, “Joint Audit Report 8-9 January 2019 Doha, Qatar”, (2019).
NEPAL TO KUWAIT AND QATAR: FAIR RECRUITMENT IN REVIEW 79projects are may be - at present - uncompetitive. It Kuwait
remains standard practice in the industry for recruitment
costs for low-paid workers to be excluded from project The law does not provide for joint-liability for employers
bids, and ethical recruiters in Qatar therefore need to and recruitment agencies. A Kuwaiti official told us
rely on clients being willing to pay extra. Kuwait had no interest in cross-corridor cooperation to
enable joint-liability for employers and recruiters.471
4.5 Are employers and recruiters jointly- Qatar
liable/accountable for respecting
workers’ rights in the legislative and To the best of our knowledge, there no mention of joint
regulatory regime governing recruitment? liability in legislation.
Nepal
To the best of our knowledge, Nepal does not have any
joint-liability requirement in its legislation.
471. Interview with Kuwaiti official, December 2019.
80 THE FIVE CORRIDORS PROJECT: CORRIDORS 2 AND 3Supported by Open Society Foundations, Humanity United and Porticus Produced by FairSquare
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